Kroll Ontrack to Be Acquired By Carlyle Group-Backed Firm for $410M

In a transaction that will create one of the largest e-Discovery review companies, the Carlyle Group-backed LDiscovery on Friday announced it will purchase its larger rival Kroll Ontrack for $410 million in an all cash transaction.

The two e-Discovery companies have signed a definitive agreement, and it is expected to close in the fourth quarter, according to the announcement .

Together, the companies will have 1,300 employees in 19 countries, the announcement said. Both companies operate in the review space, rather than the software space. Both companies are partners with kCura, and employ dozens of certified experts and administrators of its Relativity software review platform.

The deal also marks further conslidation in the e-Discovery review process: The Carlyle Group, working with Revolution Growthpurchased LDiscovery for $150 million this past January. LDiscovery itself had purchased six companies in the past two years. Will Darman, the managing director at Carlyle who led the purchase of LDiscovery has predicted there will be continued consolidation in the e-Discovery review market.

For a full list of recent e-Discovery acquisitions, see past coverage here .

Chris Weiler, Chief Executive Officer of LDiscovery will lead the new combined company while Kroll Ontrack’s Chief Executive Officer Mark Williams will become chief operating officer and a president.

Latham & Watkins is serving as M&A advisor to LDiscovery, The Carlyle Group and Revolution Growth while Simpson Thacher & Bartlett LLP is serving as legal advisor to Corporate Risk Holdings, the parent company of Kroll Ontrack.

[Image “blb newsletter” (src=https://bol.bna.com/wp-content/uploads/2016/09/blb-newsletter.jpg)]